This post is part of the 📖 1-Page Marketing Plan series.
Today, I am reading a new section Acres of Diamonds from Incresing Customer Lifetime Value chapter of the book The 1-Page Marketing Plan written by Author, serial entrepreneur and rebellious marketer Allan Dib.
Yesterday, I read some sections of Your Ultimate Customer from Delivering a World-Class Experience chapter of the book.
Tomorrow, I am going to read a new section Ascension from Delivering a World-Class Experience chapter the book. Look out for tomorrow’s article.
Acres of Diamonds
In this chapter, the author wants to focus on the “back end.” That’s the stuff that makes your existing customers buy more.
The author explained here Russell Conwell’s classic speech “Acres of Diamonds”. It’s not appropriate to discuss here as it will violate reproducing the content. Please consider purchasing the book.
The moral of the story being “dig first on your own property when seeking treasure.
Statistics to consider presented in the book:
A person is 21 times more likely to buy from a business they’ve bought from in the past compared with one they’ve never purchased.
There are 5 significant ways to increase the profit from the existing customers.
One of the most overlooked ways of increasing the lifetime value of a customer is simply by raising prices.
If you position yourself correctly, as discussed in the previous chapters (chapter 6), and delivering great customer experience, then most of the customers will happily accept price rises.
“If it’s done right, the increase in profit gained by raising your prices will outweigh any lost revenue from price-sensitive customers.
The author discussed a concept called “Grandfathering” here on this section.
If you are not sure what is an upsell, then I would like to remind you with “Would you like fries with that?”.
Yes, “Would you like fries with that?” is responsible for hundreds of millions of dollars to McDonald’s and a similar upsell strategy could be worth a fortune to you.
The author suggested the contrast principle when it comes to upselling.
The contrast principle will come into play when two different things presented sequentially feel more different than they really are.
Do you know you can listen to this book on Amazon Audible for FREE?
If you are not into reading like me, then you can listen to this book for FREE on Amazon AudibleDon't Read. Just 🎧
- The moral of the story being “dig first on your own property when seeking treasure.
- A great way of framing an upsell is to say, “Most customers who bought X also bought Y.”
- When the prospect is “hot and heavy” and in the buying state of mind, they’ll be much more receptive to other offers to buy.
Make most out of the existing customer by raising your prices.
Encourage upsells through offering your customers add-on bundles which can instantly increase your customer lifetime value.
In this groundbreaking new book you’ll discover:
How to get new customers, clients or patients and how to make more profit from existing ones.
Why “big business” style marketing could kill your business and strategies that actually work for small and medium-sized businesses.
How to close sales without being pushy, needy, or obnoxious while turning the tables and having prospects begging you to take their money.
A simple step-by-step process for creating your own personalized marketing plan that is literally one page. Simply follow along and fill in each of the nine squares that make up your own 1-Page Marketing Plan.
How to annihilate competitors and make yourself the only logical choice.
How to get amazing results on a small budget using the secrets of direct response marketing.
How to charge high prices for your products and services and have customers actually thank you for it.
Author(s): Allan Dib
Part 30 of 36 in the 📖 1-Page Marketing Plan book series.